1. calulate the accounts receivable turnover (assume 30% of sales are on credit) and convert it to days.

2. if the accounts receivable aee due in 30 days, is this accounts receivable turnover good or bad?

3. accounts payable turnover converted to days (assume 20% of your purchases are on credit. (use Cost of Goods Sold + Operating Expenses for numerator)

4. calculate the return on equity

5. calculate the return on sales

AgBiz Corporation Balance Sheet at the End of YEAR 1: $ 17,000 $ 30,000 $127.000 Current Assets: $174,000 Cash Accounts Receivable Inventory Other Assets: Land Buildings Equipment Other Assets $740,000 Total Assets: $1,020,000 $250,000 $255,000 $235,000 $ 53,000 $36.950 Current Liabilities: 89,950 Accounts Payable Notes Payable Long-term Liabilities: $320,050 Notes Payable Bonds Payable Total Liabilities: $410,000 $220,050 $100,000 Owner's Equity or Total Net Worth: $610,000 Total Liabilities and Owner's Equity $1,020,000 AgBiz Corporation Income or Profit/Loss Statement for YEAR 1: Revenues from Sales (Total Sales): $1,465,000 Cost of Goods Sold: $1,129,000 Gross Margin: S 336,000 Less: Operating Expenses: Salaries/Wages $ 140,000 Office Expenses $ 8,400 Utilities & Fuel $ 44,600 Promotion $ 92,000 Total Operating Expenses: $285,000 Income Before Taxes (Pre-Tax Income): $ 51,000